A growing trend for biotechnology and pharmaceutical companies is the move away from putting most investment resources behind one or two super drugs. Instead, they are diversifying behind a more comprehensive portfolio of products. Not surprisingly, there is a host of R&D activities that must take place to vet and launch each product, and many of these activities may qualify for the R&D tax credit.
Less than 33% of companies that qualify for the federal R&D tax credit actually utilize it, due to misconceptions about qualification and the complexity of necessary documentation. The following answers set the record straight.
As a business owner, as long as you meet the IRS’ four-part test for eligibility, you may qualify for hundreds of thousands of dollars that you can use to further grow and invest in your business. Despite this lucrative opportunity, there is still one thing that holds some companies back—the fear of being audited. Understanding this concern, Tax Point Advisors provides the following answers to the question, “Will filing for R&D credits increase my chance of being audited?”
The manufacturing industry has increasingly embraced data interconnectivity as a way of achieving greater efficiencies and meeting customers’ needs. Manufacturers of all sizes are integrating the Internet of Things (IoT) – the connection of devices to the internet and each other – and other “smart” manufacturing technology into their daily operations. Yet as they do so, they are also exposing their operations to greater security vulnerabilities.
With a longstanding reputation for leadership in aerospace, agriculture, healthcare and manufacturing, Ohio remains one of the nation’s most innovative states. To further encourage innovation, the state provides incentives for certain research and development (R&D) activities that bring new ideas to market, promote economic growth, create jobs and help keep Ohio competitive.
While most CPA firm leaders are aware R&D tax credits exist, they either lack the knowledge or manpower to get their clients involved in the process. Yet, many of the activities your clients already perform on a daily basis qualify R&D credits, and if you don’t offer this attractive tax credit to your clients, someone else likely will.
The ‘Growing Renewable Energy and Efficiency Now’ (GREEN) Act - should the Bill be enacted into law - will extend and strengthen tax incentives for energy efficiency and renewable energy.
New Jersey State Tax Credit offers incentives to promote business development and job creation. There are many tax credits available for different industries.
A taxpayer that has performed qualified research activities in New Jersey may be eligible to claim the R&D Tax Credit New Jersey. A credit for increased research activities is allowed based on qualified expenditures made in taxable years beginning on and after January 1, 1994. It provides a credit of 10% of the excess qualified research expenses over a base amount plus 10% of the basic research payments. If the research credit cannot be used because of tax liability limitations, it may be carried forward for either 7 or 15 years.
General contractors and construction companies are often struggling in this economy to keep their heads above water. The means to help them may be right in front of their eyes, and they are missing it. The federal government, as well as individual states, allow tax credit for much of what the contractors are doing. These tax credits are substantial. They are not deductions, but bottom-line, dollar for dollar reductions on taxes owed.
With another tax season underway, those who work in the construction industry are likely seeking ways to reduce their tax liabilities. Fortunately, there are two great ways construction companies can save thousands to millions of dollars—the research and development (R&D) tax credit and the 179D energy tax deduction.